Delaware Deferred Compensation Council, Dover, hired Voya Financial as administrator and record keeper of the state's 457(b), 401(a) and 403(b) plans, with a combined $962 million in assets.
The council previously had 13 active and two inactive providers that will be replaced by Voya across all three plans.
State Treasurer Ken Simpler, who co-chairs the council, said in a news release that the council wanted to streamline administration, lower costs and provide more customer support. Mr. Simpler said the hiring “reflects a strategic shift from simply offering (participants) a benefit to helping them achieve true retirement readiness.” His website notes that most plan participants have been paying retail rates before the change.
Full conversion of the plans is expected in the fall. Under the new plans, participants will have a series of target-date funds and 10 to 12 core investment options.
Cammack Retirement Group, the plans' consultant, assisted.